On the 26th, HDC Group issued a clarification regarding the ongoing sanctions procedure by the Fair Trade Commission related to allegations of unfair support for its affiliate HDC I-Park Mall, stating, "It was a legitimate decision made through a reasonable business process."
Recently, the Fair Trade Commission completed its investigation related to allegations of violations of the Fair Trade Act involving HDC and its real estate development affiliate, I-Park Mall, and sent a review report containing sanctions recommendations (similar to a prosecutor’s indictment). The Fair Trade Commission determined that HDC had provided a circumvention loan of 36 billion won for 15 years until 2020 when I-Park Mall became completely capital impaired and could no longer borrow money from financial institutions.
It is suspected that HDC supported I-Park Mall by creating a false lease agreement as if it were renting an office, handing over money under the pretext of a deposit. If the loan had been made normally, the interest that should have been received from I-Park Mall is estimated to be over 40 billion won.
In response, HDC asserted, "We determined it was reasonable to directly invest in and operate I-Park Mall, and after a decision by the board of directors, we signed a lease agreement and usage agreement with the same terms as the general lessees," adding, "This was a legitimate business judgment."
The company stated, "At that time, HDC was directly responsible for activating the commercial facilities of Yongsan Private Station, and there was a demand from commercial lessees protesting the increase in vacancies to sign lease agreements on the same terms as themselves and participate in the operation," noting that it plans to actively clarify during the Fair Trade Commission's deliberation process.